Extract contents to root of SD card
In Priiloader choose the Load/Install option
Navigate to boot.dol and choose load (not install)
Dop-Mii starts
Choose to Load IOS36 (if IOS36 doesn't work try IOS249, 250, 222, 223) If none of these work you will have to use trucha bug restorer to continue.
Choose IOS/MIOS/BC
Choose to install IOS60 v6174 from NUS - say yes to all 3 patches (You may need offline install for this since you attempted to format. Put wads from below on SD card and choose to install from SD slot instead of NUS)
Backup to the previous menu by pressing B on the Wiimote
Choose System menu
Choose to install SM 4.1 for your region from NUS (You may need offline install for this since you attempted to format. Put wads from below on SD card and choose to install from SD slot instead of NUS)
You will be asked to backup Priiloader choose to do so.
Installation completes and your are asked to restore Priiloader choose YES (VERY IMPORTANT)
Fixed

EDIT: For offline installation put these in a folder named wad on your SD card (SD:\wad)IOS60-64-v6174.zip

download this and put the hackmii installer in your apps folder on your sd card and run it through HB.-->Press 1 when it appears-->Continue on the next menu-->Scroll up to bootmii and hit A-->Scroll up to prepare sd card and press a--> yes on next menu-->done